Kept out: Loophole in law for the poor spurs gentrification
PHILADELPHIA (AP) — A federal program to help low-income communities is instead fueling gentrification. Its special loans are going to white newcomers. That’s according to an investigation by Reveal from The Center for Investigative Reporting.
The Community Reinvestment Act was supposed to reverse the damage left by redlining, a practice outlawed 50 years ago. Back then, the federal government warned banks away from neighborhoods dominated by immigrants and African Americans. But the law didn’t anticipate a day when historically black neighborhoods would be sought out by young, white homebuyers.
So instead of lending to longtime residents - who are overwhelmingly African American - most of the loans are going to white newcomers, according to Reveal, a nonprofit newsroom on the West Coast.
For more, check out the full investigation at revealnews.org/redlining.